Elliott Wave Analysis of Bank Nifty for 10 April 2017

| April 10, 2017 | 0 Comments

Waves were indicating a small or big correction in Bank Nifty in medium term in my previous analysis report as big wave (3) may be near to completion. And Bank Nifty was indicating a bounce above all time high 21696 again in short term. Nifty bounced above 21696 again and registered high of 21697 and then declined back. Now, we need to analyze latest chart to find next move.

This report is covering Bank Nifty move after 9 Feb 2017 low 20003 and earlier wave counts are explained in my previous analysis report Elliott Wave Analysis of Bank Nifty on all time Frames Dated 03 April 2017.

Elliot wave counts of bank nifty on 5 Hourly chart

                       Elliot wave counts of bank nifty on 5 Hourly chart

This is 5 hourly chart of Bank Nifty showing bounce from 20003 which is start of wave (V) on previous chart.

May be wave inner wave (3) of (v) is already completed at all time high 21696 and wave (4) may be in progress. Inner waves of wave (3) [from 20091-21696) are bit complex and inner wave V of (3) is highly extended more than 123% but counts are following all the rules.

If wave (3) is completed at 21696 then we can expect some correction for wave (4). Normal 23%-38% retracement for wave (4) is 21317-21082.

So, Bank Nifty have possibility to bounce again from 21317-21082 for new high above 21696 to complete wave (5) and 38% retracement 21082 is the breakeven/reversal point for short term because wave (4) rarely retrace more than 38%.

Now, we need to analyze the decline from all time high 21697 to see the progress of expected wave (4).

Elliott wave counts of bank nifty on 5 Min chart

                        Elliott wave counts of bank nifty on 5 Min chart

This is 5 Min chart of Bank Nifty showing Decline from all time high 21697 which is start of wave (4) on previous 5 hourly chart.
May be wave (a or 1) completed from 21697-21547, wave (b or 2) may be completed from 21547-21670 as Irregular Correction and wave (c or 3) may be started from 21670. Wave (c or 3) must be impulse but here inner wave are not clear.

Fibonacci Calculation wise, 38% retracement of progress of wave (c or 3) is at 21496 which is the reversal point and stoploss for shorts for short term. Bank Nifty if break above 21496 can bounce further for new high above 21697.

Conclusion and Outlook:

Wave Counts on all the charts are indicating that some sort of wave (3) may be completed at 21697 and wave (4) in progress.

For medium term, Bank Nifty indicating 21083 is the reversal point for downside. And for short term, 21496 is the reversal point and bank nifty if break above reversal point 21496 can bounce further for a new high above 21697.

For trading, stoploss for shorts must be 21511 (some points above 21496). And if Bank Nifty touches 21511 can be bought with stoploss of 55 points for targets above 21697.

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Category: Bank Nifty

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